In the crypto sphere, if you manage your positions well, then you will outperform the majority. Next, we introduce two position management methods:
1. Left-side position management 2.3.5
1) Do not exhaust all your bullets at once; buy in batches.
(2) You can divide your funds into several portions. When you are unsure about the bottom, buying in batches is the most suitable method to average out the cost price.
(3) The bottom-up position should be handled flexibly according to market trends; do not add positions too frequently, as this can have a negative effect on averaging the coin price. Entering 20%, 30%, or 50% is suitable for aggressive investors who are keen on bottom fishing.
(4) Start with a relatively small amount of capital. If the coin price does not rise and continues to fall, gradually increase your position, with larger proportions each time, thus averaging down the cost. This method carries relatively low initial risk; the higher the funnel, the more considerable the profit.
2. Right-side position management 3.3.2.2
1) Buy 1: When the 5-day moving average crosses above the 10-day moving average, add 30% to your position.
(2) Buy 2: When the coin price effectively breaks through the lifeline and retraces to the lifeline, continue to add 30% to your position, ensuring that the total position reaches 60% in the early stages of the upward trend.
(3) Buy 3: When it breaks through the neck line or other important resistance levels, and then retraces and stabilizes, it indicates that the reversal upward pattern is established. Add another 20% to your position. The total position should reach 80%, holding the coin for further gains.
(4) Buy 4: When the coin price is above the lifeline and a golden cross occurs between the 5-day and 10-day moving averages, this is a typical signal to accelerate upward. At this point, you should also buy the remaining 20% of your position in a timely manner to maximize profits.
